The Trucial States of the Persian Gulf coast granted the UK control of their defense and foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman, Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United Arab Emirates (UAE). They were joined in 1972 by Ra's al Khaymah. The UAE's per capita GDP is not far below those of leading West European nations. Its generosity with oil revenues and its moderate foreign policy stance have allowed the UAE to play a vital role in the affairs of the region.

Geography

United Arab Emirates

Location:

Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia

strategic location along southern approaches to Strait of Hormuz, a vital transit point for world crude oil

People

United Arab Emirates

Population:

2,484,818
note: includes an estimated 1,606,079 non-nationals; the 17 December 1995 census presents a total population figure of 2,377,453, and there are estimates of 3.44 million for 2002 (July 2003 est.)

federal court system introduced in 1971; all emirates except Dubayy (Dubai) and Ra's al Khaymah are not fully integrated into the federal system; all emirates have secular and Islamic law for civil, criminal, and high courts

Suffrage:

none

Executive branch:

chief of state: President ZAYID bin Sultan Al Nuhayyan (since 2 December 1971), ruler of Abu Zaby (Abu Dhabi) (since 6 August 1966) and Vice President MAKTUM bin Rashid al-Maktum (since 8 October 1990), ruler of Dubayy (Dubai)
note: there is also a Federal Supreme Council (FSC) composed of the seven emirate rulers; the FSC is the highest constitutional authority in the UAE; establishes general policies and sanctions federal legislation; meets four times a year; Abu Zaby (Abu Dhabi) and Dubayy (Dubai) rulers have effective veto power
head of government: Prime Minister MAKTUM bin Rashid al-Maktum (since 8 October 1990), ruler of Dubayy (Dubai); Deputy Prime Minister SULTAN bin Zayid Al Nuhayyan (since 20 November 1990)
cabinet: Council of Ministers appointed by the president
elections: president and vice president elected by the FSC (a group of seven electors) for five-year terms; election last held 2 December 2001 (next to be held NA 2006); prime minister and deputy prime minister appointed by the president
election results: ZAYID bin Sultan Al Nuhayyan reelected president; percent of FSC vote - NA%, but believed to be unanimous; MAKTUM bin Rashid al-Maktum elected vice president; percent of FSC vote - NA%, but believed to be unanimous

Legislative branch:

unicameral Federal National Council or Majlis al-Ittihad al-Watani (40 seats; members appointed by the rulers of the constituent states to serve two-year terms)
elections: none
note: reviews legislation, but cannot change or veto

three equal horizontal bands of green (top), white, and black with a wider vertical red band on the hoist side

Economy

United Arab Emirates

Economy - overview:

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since 1973, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. At present levels of production, oil and gas reserves should last for more than 100 years. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private sector involvement.

GDP:

purchasing power parity - $53.97 billion (2002 est.)

GDP - real growth rate:

1.8% (2002 est.)

GDP - per capita:

purchasing power parity - $22,100 (2002 est.)

GDP - composition by sector:

agriculture: 3%
industry: 46%
services: 51% (2000 est.)

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):

2.8% (2002 est.)

Labor force:

1.6 million (2000 est.)
note: 73.9% of the population in the 15-64 age group is non-national (July 2002 est.) (2000 est.)

because the treaties have not been made public, the exact alignment of the boundary with Saudi Arabia is still unknown and labeled approximate; boundary agreement signed and ratified with Oman in 2003 for entire border, including Oman's Musandam Peninsula and Al Madhah enclaves; UAE engage direct talks and Arab League support to resolve disputes over Iran's occupation of Lesser and Greater Tunb islands and Abu Musa island

Illicit drugs:

the UAE is a drug transshipment point for traffickers given its proximity to southwest Asian drug producing countries; the UAE's position as a major financial center makes it vulnerable to money laundering; anti-money-laundering legislation was signed into law by the president on 25 January 2002